NASDAQ:ARCC

Ares Capital - ARCC Stock Forecast, Price & News

$17.15

-0.16 (-0.92%)

(As of 03/23/2023 03:21 PM ET)

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Today's Range: $17.14
▼
$17.56
50-Day Range: $17.31
▼
$20.04
52-Week Range: $16.53
▼
$22.65

Volume: 2.65 million shs
Average Volume: 3.55 million shs
Market Capitalization: $9.34 billion

P/E Ratio: 14.29
Dividend Yield: 11.20%
Price Target: $20.71

Institutional Ownership

Ares Capital MarketRank™ Forecast

Analyst Rating: Buy
3.00 Rating Score
Upside/Downside: 20.4% Upside
$20.71 Price Target
Short Interest: Healthy
3.15% of Shares Sold Short
Dividend Strength: Weak
Based on Four Factors
Sustainability: N/A
News Sentiment: 0.18
Based on 6 Articles This Week
Insider Trading: N/A
Proj. Earnings Growth: -2.97%
From $2.36 to $2.29 Per Share

Overall MarketRank^™

MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

2.09 out of 5 stars

Finance Sector

652nd out of 876 stocks

Investors, Not Elsewhere Classified Industry

4th out of 15 stocks

2.5

Analyst's Opinion

Consensus Rating
Ares Capital has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 7 buy ratings, no hold ratings, and no sell ratings.
Price Target Upside/Downside
According to analysts' consensus price target of $20.71, Ares Capital has a forecasted upside of 20.4% from its current price of $17.21.
Amount of Analyst Coverage
Ares Capital has only been the subject of 3 research reports in the past 90 days.

3.0

Short Interest

Percentage of Shares Shorted
3.15% of the outstanding shares of Ares Capital have been sold short.
Short Interest Ratio / Days to Cover
Ares Capital has a short interest ratio ("days to cover") of 5.8.
Change versus previous month
Short interest in Ares Capital has recently decreased by 1.15%, indicating that investor sentiment is improving.

1.7

Dividend Strength

Dividend Leadership
Ares Capital is a leading dividend payer. It pays a dividend yield of 11.04%, putting its dividend yield in the top 25% of dividend-paying stocks.
Dividend Growth
Ares Capital does not have a long track record of dividend growth.
Dividend Coverage
The dividend payout ratio of Ares Capital is 160.00%. Payout ratios above 75% are not desirable because they may not be sustainable.
Dividend Sustainability
Based on EPS estimates, Ares Capital will have a dividend payout ratio of 83.84% in the coming year. This indicates that Ares Capital may not be able to sustain their current dividend.

N/A

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score
There is no current Upright™ data available for ARCC.

2.9

News and Social Media Coverage

News Sentiment
Ares Capital has a news sentiment score of 0.18. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.43 average news sentiment score of Finance companies.
News Coverage This Week
MarketBeat has tracked 6 news articles for Ares Capital this week, compared to 3 articles on an average week.
Social Mentions This Week
MarketBeat has tracked 3 reddit mentions for Ares Capital this week, compared to 1 mention on an average week.
Search Interest
179 people have searched for ARCC on MarketBeat in the last 30 days. This is an increase of 36% compared to the previous 30 days.
MarketBeat Follows
63 people have added Ares Capital to their MarketBeat watchlist in the last 30 days. This is an increase of 40% compared to the previous 30 days.

0.0

Company Ownership

Insider Buying vs. Insider Selling
In the past three months, Ares Capital insiders have not sold or bought any company stock.
Percentage Held by Insiders
Only 0.59% of the stock of Ares Capital is held by insiders.
Percentage Held by Institutions
Only 32.24% of the stock of Ares Capital is held by institutions.

1.9

Earnings and Valuation

Earnings Growth
Earnings for Ares Capital are expected to decrease by -2.97% in the coming year, from $2.36 to $2.29 per share.
Price to Earnings Ratio vs. the Market
The P/E ratio of Ares Capital is 14.34, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 121.04.
Price to Earnings Ratio vs. Sector
The P/E ratio of Ares Capital is 14.34, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 139.29.
Price to Book Value per Share Ratio
Ares Capital has a P/B Ratio of 0.92. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

See Top Rated MarketRank™ Stocks Here

About Ares Capital (NASDAQ:ARCC) Stock

Ares Capital Corporation is a specialty finance provider offering small and mid-sized businesses customized financing solutions. Ares Capital Management LLC, a subsidiary of Ares Management Corporation, manages the company. ARCC specializes in acquisition, mezzanine debt, recapitalization, restructuring and leveraged buyout transactions. Ares Commercial Finance provides asset-based cash flow solutions to small and mid-market companies.

ARCC’s investment activities focus on industries such as software, health care services, commercial and professional services, diversified financials, etc. The company offers a range of debt instruments, from senior debt instruments to equity capital, focusing on senior secured debt and debt investments ranging from $10 million to $100 million. ARCC invests through revolvers, first-lien loans, second-lien loans, unitranche (flexible business debt) structures, warrants, mezzanine debt, private high yield, subordinated debt, junior capital and non-control preferred and common equity. The company’s commitment and hold range is $30 to $500 million, and the EBITDA range is $10 to $250 million for corporate customers.

ARCC seeks to generate current income and capital appreciation through debt and equity investments and works to maximize risk-adjusted returns throughout economic cycles. ARCC’s investment committee has over 28 years of relevant experience. It invests across various industries targeting leading companies with a history of stable demonstrated competitive advantages, cash flows, identifiable growth prospects and experienced management teams.

Benefits to portfolio companies, investors and financial sponsors include dedicated and experienced professionals, access to relationships and market intelligence, deal flow, research, infrastructure, due diligence and experience with the broader Ares Management Corporation platform. Shareholder returns come from net interest and dividends from fee income, investments, and in some cases, net capital gains from equity investments. ARCC’s long-term and short-term strategies focus on maximizing relative value through economic cycles and a multi-asset class track record and experience, disciplined growth concentrated on long-term value creation, capital preservation and a long-term patient investor with permanent capital.

On January 12, 2023, Ares Capital Corporation revealed its intention to make a public offering of 9 million shares of common stock with the possibility of an additional 1.35 million shares. This offering increased from their previous offering size of nine million shares and allowed the underwriters to purchase an additional 1.5 million shares. The necessary registration statement was filed with the Securities and Exchange Commission on June 3, 2021, and became effective on the day of filing. Morgan Stanley & Co. LLC, BofA Securities, UBS Investment Bank, RBC Capital Markets, LLC and Wells Fargo Securities were joint lead book-running managers.

The proceeds from the offering will repay outstanding debt from its debt facilities. Ares Capital may also use the money for general corporate purposes, such as investing in portfolio companies following its investment objective. As of December 31, 2022, Ares Capital is regulated as a business development company (BDC) and is the largest publicly traded BDC by market capitalization.

With its experienced investment committee, diverse industry investments and potential for long-term capital appreciation, ARCC is a unique finance provider in the specialty finance market.

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ARCC Stock News Headlines

March 22, 2023 | thestreet.com

Why Ares Capital (ARCC) Stock Is Down in After-Hours Trading

March 20, 2023 | americanbankingnews.com

Ares Capital (NASDAQ:ARCC) Now Covered by Analysts at StockNews.com

March 23, 2023 | Investor Place Media (Ad)

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March 20, 2023 | americanbankingnews.com

Analysts Set Ares Capital Co. (NASDAQ:ARCC) PT at $20.71

March 16, 2023 | benzinga.com

Ares Capital Stock (NASDAQ:ARCC), Guidance and Forecast

March 15, 2023 | americanbankingnews.com

Ares Capital (NASDAQ:ARCC) Receives "Market Outperform" Rating from JMP Securities

March 14, 2023 | finance.yahoo.com

Inflation at 6%: 2 ‘Strong Buy’ Dividend Stocks That Beat This Rate

March 13, 2023 | finance.yahoo.com

Warren Buffett's Ultra-High-Yield Dividend Stock That Has Trounced the S&P 500

March 23, 2023 | Investor Place Media (Ad)

Biden To Unleash "Choke Point" Operation On America?

March 10, 2023 | finance.yahoo.com

Got $1,000? Here's How Much You Can Make From These 3 Ultra-High-Yield Stocks This Year

March 9, 2023 | finance.yahoo.com

Wall Street Bulls Look Optimistic About Ares Capital (ARCC): Should You Buy?

March 8, 2023 | seekingalpha.com

Ares Capital's NAV, Valuation And Dividend Vs. 14 BDC Peers - Part 1 (Includes Recommendation For All Covered Peers As Of 3/3/2023)

March 7, 2023 | finance.yahoo.com

Ares Capital (ARCC) Stock Moves -1.13%: What You Should Know

March 5, 2023 | seekingalpha.com

10%-Yielding Ares Capital: Buy While The Market Is Confused

March 1, 2023 | finance.yahoo.com

Ares Capital (ARCC) Stock Moves -0.05%: What You Should Know

February 27, 2023 | finance.yahoo.com

As Wall Street Chokes on Bad Buyout Loans, Rivals Seize Opening

February 26, 2023 | finance.yahoo.com

Why Warren Buffett's Highest-Yielding Dividend Stock Looks Like a Brilliant Pick Right Now

February 24, 2023 | seekingalpha.com

Ares Capital Blew Out Earnings

February 23, 2023 | finance.yahoo.com

Are Finance Stocks Lagging Apollo Commercial Real Estate Finance (ARI) This Year?

February 21, 2023 | finance.yahoo.com

Wall Street Analysts Think Ares Capital (ARCC) Is a Good Investment: Is It?

February 16, 2023 | reuters.com

Buyout barons reach deep into their bags of tricks

February 16, 2023 | msn.com

Will Investors Notice Exciting Sign On Ares Capital's Chart?

February 16, 2023 | markets.businessinsider.com

RBC Capital Keeps Their Buy Rating on Ares Capital (ARCC)

February 12, 2023 | finance.yahoo.com

3 Top Dividend Stocks in Warren Buffett's Secret Portfolio -- and How Much Income You Could Make From Them

February 12, 2023 | seekingalpha.com

A Perfect Gift For Your Children: Ares Capital's 9.6% Yield

February 10, 2023 | finance.yahoo.com

Ares Capital Corporation to Present at the BofA Securities 2023 Financial Services Conference

February 9, 2023 | markets.businessinsider.com

Analysts Conflicted on These Financial Names: Bank of New York Mellon Corporation (BK), Camden Property (CPT) and Ares Capital (ARCC)

See More Headlines

30 days | 90 days | 365 days | Advanced Chart

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ARCC Company Calendar

Last Earnings: 10/25/2021
Ex-Dividend for 12/29 Dividend: 12/14/2022
Dividend Payable: 12/29/2022
Ex-Dividend for 3/31 Dividend: 3/14/2023
Today: 3/23/2023
Dividend Payable: 3/31/2023
Next Earnings (Estimated): 4/25/2023
Fiscal Year End: 12/31/2023

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Industry, Sector and Symbol

Stock Exchange: NASDAQ
Industry: Investors, not elsewhere classified
Sub-Industry: Asset Management & Custody Banks
Sector: Finance
Current Symbol: NASDAQ:ARCC
CUSIP: 04010L10
CIK: 1287750
Web: www.arescapitalcorp.com
Phone: (212) 750-7300
Fax: 212-750-1777
Employees: N/A
Year Founded: 2004

Price Target and Rating

Average Stock Price Forecast: $20.71
High Stock Price Forecast: $23.00
Low Stock Price Forecast: $19.00
Forecasted Upside/Downside: +19.7%
Consensus Rating: Buy
Rating Score (0-4): 3.00
Research Coverage: 7 Analysts

Profitability

EPS (Most Recent Fiscal Year): $1.20
Trailing P/E Ratio: 14.43
Forward P/E Ratio: 7.33
P/E Growth: N/A
Net Income: $600 million
Net Margins: 28.63%
Pretax Margin: 54.72%
Return on Equity: 11.15%
Return on Assets: 4.85%

Debt

Debt-to-Equity Ratio: 1.29
Current Ratio: 0.99
Quick Ratio: 0.99

Sales & Book Value

Annual Sales: $2.10 billion
Price / Sales: 4.39
Cash Flow: $2.10 per share
Price / Cash Flow: 8.26
Book Value: $18.80 per share
Price / Book: 0.92

Miscellaneous

Outstanding Shares: 531,370,000
Free Float: 528,234,000
Market Cap: $9.20 billion
Optionable: Optionable
Beta: 1.01

Key Executives

Michael J. Arougheti
Co-Chairman & Executive Vice President

Kipp deVeer
Chief Executive Officer & Director

Mitch Goldstein
Co-President

Kort Schnabel
Co-President

Penni Roll
Chief Financial Officer

Key Competitors

View All Competitors

Insiders & Institutions

View All Insider Transactions
View All Institutional Transactions

ARCC Stock - Frequently Asked Questions

Should I buy or sell Ares Capital stock right now?: 7 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last twelve months. There are currently 7 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "buy" ARCC shares.
View ARCC analyst ratings or view top-rated stocks.
What is Ares Capital's stock price forecast for 2023?: 7 brokerages have issued 12-month price objectives for Ares Capital's stock. Their ARCC share price forecasts range from $19.00 to $23.00. On average, they predict the company's share price to reach $20.71 in the next year. This suggests a possible upside of 19.7% from the stock's current price.
View analysts price targets for ARCC or view top-rated stocks among Wall Street analysts.
How have ARCC shares performed in 2023?: Ares Capital's stock was trading at $18.47 on January 1st, 2023. Since then, ARCC stock has decreased by 6.3% and is now trading at $17.31.
View the best growth stocks for 2023 here.
When is Ares Capital's next earnings date?: The company is scheduled to release its next quarterly earnings announcement on Tuesday, April 25th 2023.
View our ARCC earnings forecast.
How were Ares Capital's earnings last quarter?: Ares Capital Co. (NASDAQ:ARCC) released its earnings results on Monday, October, 25th. The investment management company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.02. The investment management company earned $442 million during the quarter, compared to analyst estimates of $431.01 million. Ares Capital had a trailing twelve-month return on equity of 11.15% and a net margin of 28.63%. During the same period last year, the firm earned $0.39 earnings per share.
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?: Ares Capital announced a quarterly dividend on Tuesday, February 7th. Investors of record on Wednesday, March 15th will be given a dividend of $0.48 per share on Friday, March 31st. This represents a $1.92 annualized dividend and a dividend yield of 11.09%. The ex-dividend date is Tuesday, March 14th.
Read our dividend analysis for ARCC.
What ETFs hold Ares Capital's stock?: ETFs with the largest weight of Ares Capital (NASDAQ:ARCC) stock in their portfolio include VanEck BDC Income ETF (BIZD), Putnam BDC Income ETF (PBDC), ProShares Global Listed Private Equity ETF (PEX), Anfield Diversified Alternatives ETF (DALT), Sound Enhanced Fixed Income ETF (SDEF), WisdomTree Alternative Income Fund (HYIN), Invesco Global Listed Private Equity ETF (PSP) and Virtus Private Credit Strategy ETF (VPC).

Is Ares Capital a good dividend stock?: Ares Capital (NASDAQ:ARCC) pays an annual dividend of $1.92 per share and currently has a dividend yield of 11.02%. ARCC has a dividend yield higher than 75% of all dividend-paying stocks, making it a leading dividend payer. The dividend payout ratio is 160.00%. Payout ratios above 75% are not desirable because they may not be sustainable. Based on EPS estimates, ARCC will have a dividend payout ratio of 83.84% in the coming year. This indicates that the company may not be able to sustain their current dividend.
Read our dividend analysis for ARCC.
What other stocks do shareholders of Ares Capital own?: Based on aggregate information from My MarketBeat watchlists, some companies that other Ares Capital investors own include AT&T (T), Enterprise Products Partners (EPD), Energy Transfer (ET), Annaly Capital Management (NLY), AGNC Investment (AGNC), New Residential Investment (NRZ), AbbVie (ABBV), Cisco Systems (CSCO), Main Street Capital (MAIN) and Verizon Communications (VZ).
What is Ares Capital's stock symbol?: Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
Who are Ares Capital's major shareholders?: Ares Capital's stock is owned by a variety of institutional and retail investors. Top institutional investors include Deer Park Road Corp (0.00%), Van ECK Associates Corp (1.13%), Marshall Wace LLP (0.85%), Confluence Investment Management LLC (0.89%), Enstar Group LTD (0.77%) and Legal & General Group Plc (0.72%). Insiders that own company stock include Joshua M Bloomstein, Mary Beth Henson, Michael J Arougheti, Michael J Arougheti, Michael K Parks, Michael K Parks, Michael Lewis Smith, Penelope F Roll, R Kipp Deveer, Robert L Rosen and Steven B Mckeever.
View institutional ownership trends.
How do I buy shares of Ares Capital?: Shares of ARCC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab.
Compare Top Brokerages Here.
What is Ares Capital's stock price today?: One share of ARCC stock can currently be purchased for approximately $17.31.
How much money does Ares Capital make?: Ares Capital (NASDAQ:ARCC) has a market capitalization of $9.20 billion and generates $2.10 billion in revenue each year. The investment management company earns $600 million in net income (profit) each year or $1.20 on an earnings per share basis.
How can I contact Ares Capital?: Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The official website for the company is www.arescapitalcorp.com. The investment management company can be reached via phone at (212) 750-7300, via email at irarcc@aresmgmt.com, or via fax at 212-750-1777.

This page (NASDAQ:ARCC) was last updated on 3/23/2023 by MarketBeat.com Staff

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Ares Capital - ARCC Stock Forecast, Price & News

Ares Capital MarketRank™ Forecast

Overall MarketRank™

Analyst's Opinion

Short Interest

Percentage of Shares Shorted

Short Interest Ratio / Days to Cover

Change versus previous month

Dividend Strength

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score

News and Social Media Coverage

News Sentiment

News Coverage This Week

Social Mentions This Week

Search Interest

MarketBeat Follows

Company Ownership

Earnings and Valuation

About Ares Capital (NASDAQ:ARCC) Stock

ARCC Stock News Headlines

ARCC Company Calendar

Industry, Sector and Symbol

Price Target and Rating

Profitability

Debt

Sales & Book Value

Miscellaneous

Key Executives

Key Competitors

Insiders & Institutions

ARCC Stock - Frequently Asked Questions

Overall MarketRank^™